Compute the cost of not taking the cash discount

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Little Kimi Clothiers can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 2/14 net 55.

a. Compute the cost of not taking the cash discount.

Cost of not taking a cash discount %

b. Should the firm borrow the funds?

-No
-Yes

Reference no: EM132696550

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